Get exclusive money‑saving offers and guides

Is a savings account you can’t touch the right account for you?

Savings accounts you can't withdraw from can help you grow your savings balance.

Do you have trouble saving money? Is the temptation of having money easily available too great to resist? A savings account you can't withdraw from could help you save money. Compare accounts that you can't touch in this guide and learn how these could benefit you and help you meet financial goals.

Savings Account Offer

HSBC Flexi Saver Account

2.50 %p.a.

max rate

1.25 %p.a.

standard variable rate

Savings Account Offer

Ongoing, variable 2.50% p.a. when you deposit $300+ each month (other conditions apply). Available on balances up to $5,000,000.

Compare up to 4 providers

What is a savings account you can't withdraw from?

There are a few different types of savings accounts that lock your money away, preventing you from spending it. A high interest savings account or bonus saver account offers extra interest each month you save money. A term deposit locks your money away for a certain period of time, from one month to five years, while earning a fixed interest rate.

Savings accounts you can't touch

Savings accounts are packed with features to help you save money and grow your balance. They offer high interest rates, charge minimal or no fees and typically include a range of incentives to encourage you not to touch the money in your account. These are also called bonus saver accounts. Bonus savers offer a higher interest rate each month you make limited or no withdrawals and when you make regular deposits, providing a great incentive to keep your money in the account and to keep adding to it.

In order to activate this bonus interest rate each month you will need to satisfy certain requirements, which may include:

Depositing a specific minimum amount into your account each month.

Making a minimum number of deposits each month.

Making no or limited withdrawals each month.

Maintaining a minimum account balance.

Opening a linked transaction account and using it to perform a specific number of transactions each month.

What happens when I withdraw from my savings account?

If you don't meet the conditions of the savings account, for example if you don't deposit any money into the account for a month, you'll earn a lower interest rate on your balance for that month, which could be as low as 0.01% p.a. By scheduling an automatic transfer from your salary into your savings account each month, you can quickly build a sizable savings balance. Our savings calculator will help you work out just how much interest you can earn.

How to compare bonus saver accounts you can't touch

Make sure to compare the following when researching the benefits of bonus saver accounts:

Research the maximum interest rate you can earn on each account. Remember that you will only earn this high rate if you satisfy all the account terms and conditions each month, so check out the base interest rate that will apply if you miss a deposit or make too many withdrawals.

Check if there are deposit requirements. Is there a minimum amount you need to deposit each month in order to receive the best rate? Also check to see whether there is a minimum deposit required to open an account.

Check if there are limits on the number of withdrawals you can make. Many accounts will limit the number of withdrawals you can make each month and this limit could possibly be as low as zero. If you fail to meet this requirement, you won’t earn any bonus interest for that month.

Linked account requirements. Some banks will require you to also open a linked transaction account with them in order to open a bonus saver account. If this is the case, make sure the transaction account is suited to your needs and doesn’t have any hidden fees.

Check for any hidden account fees. Exorbitant bank fees can quickly defeat the purpose of any bonus interest earned on an account, so read the fine print to make sure you’re aware of any ongoing fees, withdrawal fees and other transaction charges.

How accessible is your cash? Check to see whether your account can only be managed online or whether you also have branch, mobile banking and phone banking access. Easy accessibility to customer service and support is another important factor.

Term deposits you can't withdraw from

A term deposit is another type of savings account that you can't withdraw from. Term deposits are more restricting than savings accounts, as you need to lock your money away for a certain length of time and can't access it at all until the term is finished. If you do need to make a withdrawal, you'll need to give 31 days' notice and pay a penalty. You can choose to lock your money away in a term deposit for one month up to five whole years at a time and the term deposit will pay a fixed rate of interest for the length of the term.

There are a couple of key benefits to term deposits. First, you get the security of a fixed interest rate and a guaranteed return on your investment. If interest rates drop while your money is locked away in a term deposit, you won’t be affected.

Second, these accounts are set up in a way to discourage you from dipping into your savings balance. You typically can’t access the funds in a term deposit without having to give 31 days' notice and paying a sizable fee, so any money you deposit is safe from the risk of impulse-buying and unnecessary spending.

On the other side of the coin, term deposits are not all that convenient if you ever need fast access to your funds in an emergency and you also won’t be able to benefit from any interest rate rises that occur until your deposit matures.

How to compare term deposits you can't touch

Consider the following features when comparing the pros and cons of term deposit accounts:

The fixed interest rate. As the table above shows, interest rates can vary greatly between banks and depending on the term you choose. Look around for the best interest rate you can find – but make sure there are no unexpected fees attached.

When interest is calculated. Check to see whether interest is calculated on the account daily, monthly, quarterly or yearly. The more often interest is calculated, the more your balance will grow as you'll earn interest on your interest.

Compare the terms and conditions. When comparing accounts, make sure you evaluate the features of accounts with the same term length. For example, only compare six month term deposits with other six month term deposits. If your bank doesn’t offer the term you want, look elsewhere.

Check the fees for early withdrawal. It’s worth checking what sort of fee you will incur if you need to withdraw your money before the term ends.

Check where interest is paid on maturity. Is the interest you earn paid back into the same account or into a different account? Do you need to open a linked account with the same financial institution to receive interest payments?

Are there loyalty bonuses? If you want to re-invest your money into another term deposit after your first deposit matures, will you be rewarded for your loyalty with a bonus interest rate?

Term deposits and bonus saver accounts can both offer many benefits to people who struggle to save money. Make sure you research the benefits and drawbacks of both types of accounts before deciding if either one is right for you.

Shirley Liu is a program manager at finder, formerly the publisher for Banking and Investments. She is passionate about helping people make an informed decision, save money and find the best deal for their needs.

Disclaimer - Hive Empire Pty Ltd (trading as finder.com.au, ABN: 18 118 785 121) provides factual information, general advice and services on financial products as a Corporate Authorised Representative (432664) of Advice Evolution Pty Ltd AFSL 342880. Please refer to our FSG - Financial Products. We also provide general advice on credit products under our own Credit Licence ACL 385509. Please refer to our Credit Guide for more information. We can also provide you with general advice and factual information on about a range of other products, services and providers. We are also a Corporate Authorised Representative of Countrywide Tolstrup Financial Services Group Pty Ltd. ABN 51 586 953 292 AFSL 244436 for the provision of general insurance products. Please refer to our FSG - General Insurance. We hope that the information and general advice we can provide will help you make a more informed decision. We are not owned by any Bank or Insurer and we are not a product issuer or a credit provider. Although we cover a wide range of products, providers and services we don't cover every product, provider or service available in the market so there may be other options available to you. We also don't recommend specific products, services or providers. If you decide to apply for a product or service through our website you will be dealing directly with the provider of that product or service and not with us. We endeavour to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide. If you are unsure you should get independent advice before you apply for any product or commit to any plan. (c) 2018.

Thank you for your feedback.

Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.

Important information about this website

finder.com.au is one of Australia's leading comparison websites. We compare from a wide set of major banks, insurers and product issuers.

finder.com.au has access to track details from the product issuers listed on our sites. Although we provide information on the products offered by a wide range of issuers, we don't cover every available product. You should consider whether the products featured on our site are appropriate for your needs and seek independent advice if you have any questions.

Products marked as 'Promoted' or "Advertisement" are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options and find the best option for you.

The identification of a group of products, as 'Top' or 'Best' is a reflection of user preferences based on current website data. On a regular basis, analytics drive the creation of a list of popular products. Where these products are grouped, they appear in no particular order.

Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment.

We try to take an open and transparent approach and provide a broad based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.

Some product issuers may provide products or offer services through multiple brands, associated companies or different labelling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.

Providing or obtaining an estimated insurance quote through us does not guarantee you can get the insurance. Acceptance by insurance companies is based on things like occupation, health and lifestyle. By providing you with the ability to apply for a credit card or loan we are not guaranteeing that your application will be approved. Your application for credit products is subject to the Provider's terms and conditions as well as their application and lending criteria.

Please read our website terms of use for more information about our services and our approach to privacy.